US President Donald Trump pointed to India as one of the world’s fastest-growing major economies, arguing that the United States should be achieving much higher economic growth instead of being constrained by concerns over inflation and interest rates. In an interview with CNBC, Trump praised India’s economic performance while criticising the US Federal Reserve for what he described as an overly cautious approach to monetary policy. “You have a couple of countries, India is one, doing very well, but it’s at 7, 8 per cent,” Trump said. “We’re not allowed to go up. If we go up, they want to kill it.” Trump argued that the United States should be targeting much faster economic expansion. “There’s no reason we should stop at 4 per cent. We should be at 12 and 13 per cent GDP.”

 

The President made the remarks while discussing interest rates following the release of stronger-than-expected US employment data. India has remained one of the world’s fastest-growing major economies in recent years, with growth supported by domestic consumption, investment and Government-led infrastructure spending. The country has also attracted increasing global investment as multinational companies diversify supply chains and expand manufacturing beyond China. Economic ties between India and the United States have expanded steadily over the past decade, with growing cooperation in trade, technology, semiconductors, clean energy and defence.

 

The two countries are also working to deepen investment and supply chain partnerships as part of their broader strategic relationship. Trumpe said financial markets had developed what he called “this horrible derangement syndrome about inflation”, where positive economic data often led investors to expect higher interest rates.